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$82.30 2.85 (3.59%)
5/16/2008 4:04 PM

Royal Dutch Shell (RDS-B)

CAPS Rating:
****

The Company consists of the upstream businesses of Exploration & Production and Gas & Power and the downstream businesses of Oil Products and Chemicals. It also has interests in other industry segments such as Renewables and Hydrogen.

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Avatar hondo928 (99.73) Submitted: 5/07/08 10:22 PM : Outperform Start Price: $79.44 RDS-B Score: 1.55

Big Oil is in a win win situation right now, the government looks like a bunch of idiots with the combination of food prices going through the roof by trying to push ethanol, and the dollar depreciating incredibly. Personally I think shell is the weakest of the big oil companies but that's like being the worst player on the all-star team.

On top of the government looking like a bunch of idiots which has led to higher prices for oil, and more profits for Shell and the likes, Shell can now pursue Oil Shale projects, Oil sand projects etc. and still get a return...if the government lets them. And say oil prices go down, well in turn inflation goes down which means Investment Expenditures will increase, they can make better models and choose projects more effectively. All of this is on top of a what I am beginning to see as an almost Perfectly Inelastic Demand curve for Energy in the U.S. and elsewhere, while certainly at a point it will shift right now people aren't doing anything at $120, maybe $200 they'll change their mind?

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